Competent investment is an issue that occupies the minds of all businessmen. And the question of investments in real estate – most of them. Today we will talk about the pros and cons of investing in Spanish real estate. What are the pitfalls, what to pay close attention to, what to consider when deciding to buy an apartment, house or villa in Spain?
Options for buying a home in Spain
You can buy in this sunny country:
- Affordable apartments in unofficial areas;
- Luxury apartments, penthouses in good areas and resorts;
- Middle class houses;
- Comfortable villas.
This division is conditional, there are other options that the Spanish real estate market offers in abundance. Each of them will have its own features. Now it is very easy to buy a home mallorca or in another region of Spain.
Features of buying an apartment, penthouse, house in Spain
If you buy an expensive villa or penthouse, you should keep in mind the high monthly costs of maintaining the property in good condition and maintenance. A separate expense item is the pool, which must be cleaned regularly, etc. The utilities and taxes in Spain are quite high. However, apartments and houses often lack heating. This point must be taken into account. In large cities, such as Barcelona, prestigious areas, in resorts housing is much more expensive. If you need a mortgage, you should count on no more than 80% of the cost of housing.
In all cases, you will need to collect a package of documents that will confirm your solvency, without this it is impossible to solve the bureaucratic issues. Command of the Spanish language and knowledge of local laws at least in general terms will be an advantage for any investor, in the absence of such skills will need to allocate additional financial resources for legal support and intermediary services. Legal cleanliness and knowledge of the object is essential, as in Spain:
- Together with real estate in Spain to the new owner and all debts on it pass;
- If the property is rented out, the new owner can not evict the tenants and must wait until the expiry of the contract;
- If you buy a home where residents leave the area for the winter, there is no good infrastructure, then renting out all year round will be difficult. You have to choose objects that are no more than 15 minutes away by car from the sea and the city – they are the most competitive;
- The acquired property (if land is bought) may be subject to servitude. This concept means the right of neighbors to pass on your territory.
These are just a few nuances typical of the Spanish real estate market. For the security of investments it is necessary to know about all the features, check the acquired property on all the parameters.
The pros of buying a home in Spain
In Spain, one of the most favorable conditions for buying a home in Europe. Mortgage lending is available even for those who do not have a residence permit. Low interest rate is another big plus. It can be fixed. Rental income can be higher than the monthly mortgage payment to the bank. The market is open and waiting for foreign investors. Becoming the owner of a home in Spain worth more than 500 thousand euros, you get a residence permit (“Golden visa”). You can not work on it, but you can live in the country indefinitely. The crisis has led to the fact that housing has fallen in price almost twice, so that to buy any real estate now is the time, if then you want to resell the house or apartment, or to organize your business in this country.